Without much warning, Beijing suddenly put cross-border online brokerages in the crosshairs to make them the latest targets of an intensifying campaign that has already eliminated an entire industry in private tutoring and seriously crippled real estate agents offering intermediary services. The rout hitting online brokerages including, market leaders Futu Holdings and Up Fintech, began with damning commentaries from a central banker and state media. Why is Beijing aiming the gun at cross-border online brokerages this time around? However, what state media or the central bank official did not mention was Beijing's probable mounting concern over the loss of capital to the outside as the central government tightens its grip at home and in Hong Kong. The brokerages may plead not guilty as the transactions technically happen outside the mainland and involve external trading platforms and offshore bank accounts opened by their mainland clients.

Source: The Standard October 31, 2021 19:31 UTC